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Differential Analysis involving Opportunity costs On August 1, Rantoul Stores Inc. is considering leasing building and purchasing the necessary equipment to operate a retail store.

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Differential Analysis involving Opportunity costs On August 1, Rantoul Stores Inc. is considering leasing building and purchasing the necessary equipment to operate a retail store. Alternatively, the company could the finds to invest in $1,000,000 US Treasury bonds that mature in 15 years. The bonds could be purchased at face value. The following dat have been assembled: Cost of store equipment $1,000,000 Life of store equipment 15 years Estimated residual value of store equipment $50,000 Yearly costs to operate the store, exduding depreciation of store equipment $200,000 Yearly expected revetyears 1-6 $300,000 Yearly expected revenues years 7-15 $400,000 required 1. Propor a ameruntual analysis was of August 1 prosenting the proposes operation of 19e more for Me 18 years (Atomatve 1) a comparer et mention. Tiety Bonds carameswar.com enter"0 Differential Analysis Operate Hetall (Alt. 1) or Invest in Blonde (Alt. 2) August Operate Invest in Differential Metall Bonds Efects (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costs to operate store Previous Check My Works Check My Workmaning Al work eve Sub for Grading Assignment Score 2015 Required: 1. Prepare a differential analysis asof Att presenting the proposed operation of the store for the 15 years (1) compared with us. Treasuryono matt enter" Differential Analysis Operate Retail (At. 1) or Invest in Bonds (Art. 2) August 1 Operate Thrvest in befferential Retail Bonds Effects (Alternative 1) (Alternative 2) (Alternative 2) Reveries Costs Cost to operate store Cost of opment les residual value Profit (los) 2. Based on the results discosed by the differential analyser be accepted? Yes psallis accepted, what would be the total estimated operating income of the store for the 15 ware? NO Pro Check My Woman Cheok My Work uses romano AN Eraldar entatue Arary Assignment Score: 20%

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